Systems and methods for facilitating a transaction by matching seller information and buyer information

ABSTRACT

Systems and methods are provided to facilitate a transaction between a seller and a buyer. According to one embodiment, seller offer information is received at a controller. The seller offer information is associated with an item, such as a secondary market item, being offered for sale by a seller. Buyer offer information, associated with a buyer offering to make a purchase, is also received. An evaluation rule is determined, and the seller offer information and the buyer offer information are matched based on the evaluation rule. It is then arranged for the seller to sell the item to the buyer. According to another embodiment, an appropriate item price is determined based on the seller offer information. Information associated with the appropriate item price is transmitted to the seller, and an actual item price is determined. According to another embodiment, a subsidy is determined, the subsidy being associated with a benefit from a subsidy provider to be applied to the transaction. In this case, it is arranged for the seller to provide the item to the buyer in accordance with the benefit. A seller offer and/or a buyer offer may be binding, and a penalty may be applied if a seller and/or a buyer does not complete a transaction.

CROSS REFERENCE TO RELATED APPLICATIONS

The present application claims the benefit of U.S. Provisional PatentApplication Ser. No. 60/176,158 filed Jan. 14, 2000. The entire contentof this application is incorporated herein by reference.

The present application is related to U.S. patent application Ser. No.08/964,967 entitled “Conditional Purchase Offer (CPO) Management Systemfor Collectibles” and filed Nov. 5, 1997, which is acontinuation-in-part of U.S. patent application Ser. No. 08/889,319entitled “Conditional Purchase Offer Management System” and filed Jul.8, 1998, which is a continuation-in-part of U.S. patent application Ser.No. 08/707,660 entitled “Method and Apparatus for a CryptographicallyAssisted Commercial Network System Designed to Facilitate Buyer-DrivenConditional Purchase Offers,” filed on Sep. 4, 1996 and issued as U.S.Pat. No. 5,794,207 on Aug. 11, 1998; U.S. patent application Ser. No.09/282,747 entitled “Method and Apparatus for Providing Cross-BenefitsBased on a Customer Activity” and filed Mar. 31, 1999; U.S. patentapplication Ser. No. 09/274,281 entitled “Method and Apparatus forProviding Cross-Benefits via a Central Authority” and filed Mar. 22,1999; and U.S. patent application Ser. No. 09/322,351 entitled “Methodand Apparatus for Providing Cross Benefits and Penalties” and filed May28, 1999; U.S. patent application Ser. No. 09/100,684 entitled “BillingStatement Customer Acquisition System” and filed May 19, 1999, which isa continuation-in-part of U.S. patent application Ser. No. 08/982,149entitled “Method and Apparatus for Printing a Billing Statement toProvide Supplementary Product Sales” and filed on Dec. 1, 1997. Theentire contents of these applications are incorporated herein byreference.

FIELD OF THE INVENTION

The present invention relates to commerce. In particular, the presentinvention relates to systems and methods for facilitating a transactionbetween a seller and a buyer.

BACKGROUND OF THE INVENTION

Many consumers are interested in selling items. A consumer may, forexample, be interested in selling a used or second-hand item (i.e., a“secondary market” item) that he or she owns but no longer uses.Consumer electronics, exercise equipment, automobiles and collectibles(e.g., coins or stamps) are some examples of such secondary marketitems. Similarly, a consumer may be interested in selling, for example,a theater or concert ticket that he or she will not be able to use.

One way for a consumer to sell an item is through a merchant who in turnre-sells the item to another consumer. Such a merchant, however, willwant to profit from the transaction, or at least pay for overheadassociated with the transaction (e.g., employee salaries, rent,insurance). As a result, an item price the consumer may receive from themerchant in exchange for selling the item is generally less than an itemprice another consumer will be willing to provide to the merchant inexchange for the item.

Moreover, a merchant who deals with a large number of consumers may notbe flexible with respect to one or more transaction terms. For example,the merchant may insist that every consumer bring his or her itemsdirectly to the merchant. A consumer may, however, prefer that a buyerpick-up an item from his or her home. For example, a consumer may preferthat a buyer pick-up a heavy and bulky piece of exercise equipment.Another consumer may prefer to meet a buyer at a mutually convenientlocation to complete a transaction (e.g., to maintain his or heranonymity). It will typically not be practical for a merchant toindividually negotiate delivery terms, or other transaction terms, witheach consumer.

Another problem with selling an item to a merchant is that a consumermay not be able to determine a reasonable price for the item. That is, amerchant will typically set the item price, and the consumer may have noway of knowing if the merchant's item price is reasonable. Although theconsumer could bring the item to a number of different merchants todetermine a reasonable price (e.g., by comparing item prices set bydifferent merchants), such a solution would be inconvenient and timeconsuming.

In addition to selling items, many consumers are interested inpurchasing items, such as secondary market items. Purchasing such itemsfrom merchants, however, may involve the same disadvantages as describedabove with respect to the sale of such items. Namely, a merchant mayincrease an item price and may not be flexible with respect totransaction terms. Moreover, a merchant typically determines an itemprice, and a consumer interested in purchasing the item may not be ableto determine if the item price is reasonable.

As a result of these disadvantages, many consumers are interested incompleting transactions directly with other consumers. Because no thirdparty needs to make a profit, or pay for overhead, both the seller andthe buyer can often benefit from such a direct “consumer-to-consumer”transaction. Moreover, both consumers can work together to decide onagreeable terms for the transaction, such as a mutually convenientdelivery location.

To help facilitate consumer-to-consumer transactions, “on-line” servicesthat communicate with a large number of sellers and buyers, such as aWorld Wide Web site provided via the Internet, have become increasinglypopular.

In a classified advertisement, or “classifieds,” type of on-lineservice, a seller can advertise an item to be sold at a particularprice. When a buyer agrees to purchase the item at that price, the itemis sold to the buyer. The advertisement may include, for example, adescription of the item and an item price. A buyer can similarlyadvertise that he or she is interested in purchasing a particular typeof item.

In an “auction” type of on-line service, a seller posts an item to besold by auction. A post for an auction may include, for example, an itemdescription but not an item price. A number of buyers may submit bidsfor that item, and the item is sold to the bidder that submits thehighest bid. Such an auction type of on-line service can also let aseller set a “floor price” for the item. That is, the item will not besold below the floor price even if no higher bids are submitted.

In addition to the classifieds and auction types of services, U.S.patent application Ser. No. 08/964,967, entitled “Conditional PurchaseOffer (CPO) Management System for Collectibles,” discloses a systemwherein a CPO management system receives a Conditional Purchase Offer(CPO) from a buyer. The buyer's CPO is a binding offer containing one ormore conditions submitted by a buyer for the purchase of an item at abuyer-defined price. The CPO management system then determines whetherone or more sellers are willing to accept the buyer's CPO. If a selleraccepts the buyer's CPO, and ultimately delivers an item complying withthe conditions, the buyer is bound to provide payment of thebuyer-defined price. The buyer's CPO may be guaranteed, for example, bya credit card account. In this way, a “race” between sellers results(i.e., the sellers compete to accept a buyer's CPO with a reasonablebuyer-defined price).

With the consumer-to-consumer services described above, however, it maybe difficult for a buyer and a seller to complete a transaction. Forexample, although a buyer may be able to determine that a seller isinterested in selling a kitchen table, the buyer may not be able todetermine if the seller is willing to deliver the table to a particulartown. Similarly, a seller interested in selling a camera with a tripodand a particular zoom ratio may need to review information submitted byhundreds of buyers to determine which buyers are interested inpurchasing a camera with these qualifications. It may be especiallydifficult for sellers and buyers to complete a transaction with respectto secondary market items, where the condition of an item can varywidely.

Moreover, problems exist with the ability of known consumer-to-consumerservices to match buyers and sellers. For example, a seller mayestablish an unreasonable item price (e.g., an item price that is toohigh). Similarly, a buyer may submit an item price that is too low. Inother cases, a buyer may be unable to pay, or a seller may be unable toaccept, what he or she realizes is a reasonable item price. Such gapsbetween an item price a seller is willing to accept and an item price abuyer is willing to pay reduces the number of transactions completed bysuch services.

Another problem with known consumer-to-consumer services is that aseller may initiate, but not complete, a transaction. For example, abuyer may contact a seller who advertised that he or she was interestedin selling four tickets to a particular concert only to find out thatthe seller had already sold the tickets to someone else. Similarly, aseller may back-out of a transaction for any number of other reasons(e.g., if the seller and the buyer are unable to agree on a transactionterm, such as a delivery term). In addition, buyers may also decide tonot complete a transaction in many consumer-to-consumer services.

Moreover, consumer-to-consumer services typically have only a limitedability and/or flexibility to profit from a completed transaction. Forexample, an consumer-to-consumer service may charge a seller 5% of asale price in exchange for facilitating a transaction. The service,however, typically does not select a particular buyer, or a particularseller, based on a resulting profit to the service. Similarly, theservice typically does not select a buyer and/or seller based on otherinformation associated with the effectiveness of the service (e.g., atotal number of transactions that are completed by the service ordemographic characteristics associated with the seller and/or buyer).

Note that, businesses face many of the same problems discussed abovewith respect to consumers. For example, a business interested in sellingitems to, or purchasing items from, consumers—or even a businessinterested in selling items to, or purchasing items from, otherbusinesses—may find it difficult to complete a transaction.

Thus, a need exists for improved systems that facilitate transactionsbetween buyers and sellers.

SUMMARY OF THE INVENTION

To alleviate problems inherent in the prior art, the present inventionintroduces systems and methods to facilitate a transaction between aseller and a buyer.

According to one embodiment of the present invention, seller offerinformation, associated with an item being offered for sale by a seller,is received. Buyer offer information, associated with a buyer offeringto make a purchase, is also received. An evaluation rule is determinedand the seller offer information and the buyer offer information arematched based on the evaluation rule. It is then arranged for the sellerto sell the item to the buyer.

According to another embodiment, seller offer information, associatedwith an item being offered for sale by a seller, is received. Anappropriate item price is determined based on the seller offerinformation, and information associated with the appropriate item priceis transmitted to the seller. An actual seller price is then determined.Similarly, an appropriate item price may be determined based on buyeroffer information, and an actual buyer item price may be determined.

According to another embodiment, seller offer information, associatedwith an item being offered for sale by a seller, is received. Buyeroffer information, associated with a buyer offering to make a purchase,is also received. A subsidy is determined, the subsidy being associatedwith a benefit from a subsidy provider to be applied to the transaction.It is then arranged for the seller to provide the item to the buyer inaccordance with the benefit.

According to another embodiment, a binding seller offer is received, thebinding seller offer being associated with an item being offered forsale by a seller. A binding buyer offer is also received, the bindingbuyer offer being associated with a buyer offer to make a purchase. Thebinding seller offer is matched with the binding buyer offer, and it isarranged for the seller to sell the item to the buyer.

One embodiment of the present invention comprises: means for receivingseller offer information associated with an item being offered for saleby a seller; means for receiving buyer offer information associated witha buyer offering to make a purchase; means for determining an evaluationrule; means for matching the seller offer information and the buyeroffer information based on the evaluation rule; and means for arrangingfor the seller to sell the item to the buyer.

Another embodiment comprises: means for receiving seller offerinformation associated with an item being offered for sale by a seller;means for determining an appropriate item price based on the selleroffer information; means for transmitting information associated withthe appropriate item price to the seller; and means for determining anactual seller price.

Another embodiment comprises: means for receiving seller offerinformation associated with an item being offered for sale by a seller;means for receiving buyer offer information associated with a buyeroffering to make a purchase; means for determining a subsidy, thesubsidy being associated with a benefit from a subsidy provider to beapplied to the transaction; and means for arranging for the seller toprovide the item to the buyer in accordance with the benefit.

Another embodiment comprises: means for receiving a binding seller offerassociated with an item being offered for sale by a seller; means forreceiving a binding buyer offer associated with a buyer offering to makea purchase; means for matching the binding seller offer with the bindingbuyer offer; and means for arranging for the seller to sell the item tothe buyer.

With these and other advantages and features of the invention that willbecome hereinafter apparent, the nature of the invention may be moreclearly understood by reference to the following detailed description ofthe invention, the appended claims and the several drawings attachedherein.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a block diagram overview of a transaction system according toan embodiment of the present invention.

FIG. 2 is a block diagram of a controller according to an embodiment ofthe present invention.

FIG. 3 is a tabular representation of a portion of a buyer databaseaccording to an embodiment of the present invention.

FIG. 4 is a tabular representation of a portion of a seller databaseaccording to an embodiment of the present invention.

FIG. 5 is a tabular representation of a portion of an offer to buydatabase according to an embodiment of the present invention.

FIG. 6 is a tabular representation of a portion of an offer to selldatabase according to an embodiment of the present invention.

FIG. 7 is a tabular representation of a portion of an item categorydatabase according to an embodiment of the present invention.

FIG. 8 is a tabular representation of a record of a quality classdatabase according to an embodiment of the present invention.

FIG. 9 is a tabular representation of a portion of a matching objectivesdatabase according to an embodiment of the present invention.

FIG. 10 is a tabular representation of a record of a rule databaseaccording to an embodiment of the present invention.

FIG. 11 is a tabular representation of a portion of a subsidy rulesdatabase according to an embodiment of the present invention.

FIG. 12 is a tabular representation of a portion of a subsidy databaseaccording to an embodiment of the present invention.

FIG. 13 is a tabular representation of a portion of a transactiondatabase according to an embodiment of the present invention.

FIG. 14 is a flow chart of a method according to an embodiment of thepresent invention.

FIG. 15 is a flow chart of a method according to another embodiment ofthe present invention.

FIG. 16 is a flow chart of a method according to another embodiment ofthe present invention.

FIG. 17 is a flow chart of a matching method according to an embodimentof the present invention.

FIG. 18A is a flow chart of an offer to buy method according to anembodiment of the present invention.

FIG. 18B is a flow chart of an offer to sell method according to anembodiment of the present invention.

FIG. 19 is a flow chart of a matching method according to an embodimentof the present invention.

FIGS. 20A through 20C are a flow chart of a subsidy method according toan embodiment of the present invention.

FIG. 21 is a flow chart of a matching objective method according to anembodiment of the present invention.

FIG. 22 is a flow chart of a timed-release method according to anembodiment of the present invention.

FIG. 23 is a flow chart of a method for arranging a sale of a secondarymarket item in accordance with an embodiment of the present invention.

DETAILED DESCRIPTION OF THE INVENTION

The present invention is directed to systems and methods forfacilitating a transaction between a seller and a buyer. According toone embodiment, a controller receives seller offer information, such asan Offer To Sell (OTS), from a seller. The seller may be, for example,an individual or business who is interested in selling an item. The itemmay be, by way of example, any product or service, such as a secondarymarket item, computer software, a ticket, a future product, a hotel roomreservation, or a gift certificate. The OTS may include, for example, aseller price and information describing the item.

The controller also receives buyer offer information, such as an OfferTo Buy (OTB), from a buyer. The buyer may be, for example, an individualor business who is interested in making a purchase. For example, thebuyer may be interested in purchasing an item or purchasing a right toan item (e.g., renting or licensing the item). The OTB may include, forexample, a buyer price and an item category (e.g., medium screentelevisions or 35 mm cameras).

The controller “matches” the OTS and the OTB based on an evaluation rule(e.g., determines that the OTS satisfies the OTB and the OTB satisfiesthe OTS), and arranges for the seller to sell the item to the buyer. AnOTB may be matched with an OTS based on, for example, the item categoryassociated with the OTB, the information describing the item associatedwith the OTS, the buyer price, and the seller price. As used herein, amatching offer may be an OTS that matches an OTB or an OTB that matchesan OTS.

Referring in detail to the drawings, FIG. 1 is a block diagram overviewof a transaction system 100 according to one embodiment of the presentinvention. The transaction system 100 includes seller devices 10 andbuyer devices 20 in communication with a controller 200. As used herein,devices (such as the seller devices 10, the buyer devices 20, thecontroller 200 and/or a subsidy provider device 30) may communicate, forexample, via a communication network, such as a Local Area Network(LAN), a Metropolitan Area Network (MAN), a Wide Area Network (WAN), aPublic Switched Telephone Network (PSTN), or an Internet Protocol (IP)network such as the Internet, an intranet or an extranet. Moreover, asused herein, communications include those enabled by wired and/orwireless technology.

Note that the seller devices 10 and the buyer devices 20 may not be inconstant communication with the controller 200. For example, a sellerdevice 10 may only communicate with the controller 200 when a selleraccesses a Web site associated with the controller 200. Althoughembodiments of the present invention are described with respect toinformation exchanged via a Web site, according to other embodimentsinformation can instead be exchanged via, for example: a telephone, anInteractive Voice Response Unit (IVRU), a facsimile machine, regularmail, electronic mail, a WFBTV® interface, an Automated Teller Machine(ATM), a cable network interface, or a wireless communication system.

In general, the controller 200 and the subsidy provider device 30 can beany device capable of performing methods in accordance with the presentinvention. For example, the controller 200 may be a Web server. Theseller device 10 and/or the buyer device 20 may be, for example: aPersonal Computer (PC), a portable computing device such as a PersonalDigital Assistant (PDA), a wired or wireless telephone, a one-way ortwo-way pager, a kiosk, an ATM, a smart card, a magnetic stripe card, orany other appropriate communication or storage device.

Note that the seller devices 10 and/or the buyer devices 20 may includea number of different types of devices (e.g., some buyers may use PCswhile others use telephones). Also note that any of the seller devices10, the buyer devices 20, the subsidy provider device 30 and/or thecontroller 200 may be incorporated in a single device (e.g., a kiosk mayserve as a seller device 10, a buyer device 20 and a controller 200).

According to an embodiment of the present invention, the controller 200may receive an offer, including offer information, a seller device 10 ora buyer device 20. As used herein, an “offer” may mean either an OTB oran OTS and is not limited to the legal definition of an offer (i.e., anoffer may include a communication that will not result in a bindingcontract when accepted). The controller 200 generates a matching codefor the offer based on the offer information. Typically, the offerinformation associated with an OTB is “broad” (e.g., only an itemcategory is provided) and the offer information associated with an OTSis “specific” (e.g., a seller describes in detail a particular item heor she is interested in selling). The matching code is used by thecontroller 200 to find a matching offer.

According to one embodiment, the controller 200 stores indications of“quality classes” which indicate various levels of item quality. Forexample, the controller 200 may use the offer information to assign aquality score (e.g., a score indicating that the item has four out offive desirable features) and, based on the quality score, assign theoffer to a particular quality class. The quality class may, for example,enable the controller 200 to find a matching offer with a comparablequality.

Determining a quality class also enables the controller 200 to determineand suggest an appropriate item price (e.g., $50) or item price range(e.g., $45 to $55) for an |offer. For example, the controller 200 mayretrieve an appropriate item price range associated with a quality classand transmit an indication of the appropriate item price range to thebuyer or seller associated with the offer. The buyer or seller mayselect an appropriate item price or item price range, or enter his orher own item price.

According to one embodiment, the controller 200 matches an OTS and anOTB by searching for matching offer codes. The search may be performed,for example, when a new OTS is received, when a new OTB is received,and/or on a periodic (e.g., every hour) or non-periodic basis. Thecontroller 200 may then, according to one embodiment, retrieve the itemprice associated with each potentially matching offer. When searchingfor a match for an OTS, the controller 200 may eliminate a potentiallymatching OTB if an item price associated with the OTB (e.g., a maximumbuyer price) is lower than an item price associated with the OTS (e.g.,a minimum seller price). Similarly, when searching for a match for anOTB, the controller 200 may eliminate a potentially matching OTS if anitem price associated with the OTS is higher than an item buyer priceassociated with the OTB.

If the controller 200 determines that a matching offer cannot be found,the controller 200 may, according to one embodiment, calculate a subsidyamount that would need to be added to (or subtracted from) an offerprice in order to find at least one matching offer. For example,consider an OTS associated with a seller price of $100. The controller200 may determine that a first OTB associated with a buyer price of $50and a second OTB associated with a buyer price of $80 potentially matchthe OTS (e.g., each OTB is associated with an item category that matchesthe item associated with the OTS). In this case, the controller 200 maydetermine that a subsidy of $20 (i.e., $100−$80) would enable the secondOTB to match the OTS. Note that the $20 may either be added to the OTBor subtracted from the OTS. When the subsidy is provided by a thirdparty (e.g., a party other than the controller 200, the buyer and/or theseller), the controller 200 may communicate with the subsidy providerdevice 30 to determine if the subsidy may be offered to the buyer or theseller (e.g., in exchange for the buyer and/or the seller performing atask).

According to an embodiment of the present invention, if more than onematching offer exists based on matching codes and item prices, thecontroller 200 retrieves a matching objective in order to select amatching offer. The matching objective may be, for example, any rule orset of rules the controller 200 can use to select a matching offer. Forexample, different matching objectives may be arranged into a hierarchyand applied (e.g., to eliminate potentially matching offers) until asingle matching offer remains. The hierarchy may be adjusted, forexample, manually by an operator of the controller 200 or automaticallybased on historical, current or predicted data. Once a single matchingoffer is found, the controller 200 may, according to an embodiment ofthe present invention, automatically “bind” the offers (i.e., associatethe seller's OTS with the buyer's OTB) and notify the seller and buyerof the completed match. According to one embodiment of the presentinvention, the controller 200 also arranges for the seller to sell theitem to the buyer.

Note that a seller device 10 and/or a buyer device 20 may alsocommunicate directly with the subsidy provider device 30 (as shown by adashed line in FIG. 1). For example, a subsidy provider may offer tocontribute an amount that will enable an OTS to match with an OTB ifboth the seller and the buyer apply for a new credit card. In this case,the credit card application information (e.g., the customer's name,address and Social Security number) may be transmitted directly from theseller device 10 and the buyer device 20 to the subsidy provider device30. Similarly, information about available subsidy offers may betransmitted directly from the subsidy provider device 30 to one or moreseller devices 10 and/or buyer devices 20.

Note that although a single subsidy provider device 30 is shown in FIG.1, any number of subsidy provider devices 30 may be included in thetransaction system 100. Similarly, any number of the other devicesdescribed herein may be included according to embodiments of the presentinvention (e.g., a number of controllers may operate together).

TRANSACTION EXAMPLES

Several transaction examples will now be described to illustrate how thetransaction system 100 may be used according to various embodiments ofthe present invention. Although some examples are described with respectto an OTB submitted by a buyer, it will be understood by those skilledin the art that similar examples may involve an OTS submitted by aseller.

Consider a buyer who is interested in purchasing an item. The controller200 may receive buyer offer information, such as buyer registrationinformation (e.g., submitted when the buyer registered to use thecontroller 200) and/or an OTB, from a buyer device 20. The buyer offerinformation may be used, for example, to generate a matching code forthe OTB.

The controller 200 may receive the buyer offer information, for example,after leading the buyer through a series of questions (e.g., pull-downmenus displayed via a Web site) to define an item category (e.g.,exercise equipment), a condition of the item (e.g., mint, good, orfair), and the age of the item.

The controller 200 may also prompt the buyer to enter a generaldescription of the item he or she is interested in purchasing. Forexample, the buyer may supply a brand name, a manufacturer, and modelnumber of a particular item her or she is interested in purchasing (orof a representative item). In this case, the controller 200 maycategorize the description for the buyer.

The controller 200 may also determine a quality class associated withthe buyer offer information. For example, the buyer may select an itemcategory, and the controller 200 may retrieve and display qualityclasses associated with that category. A quality class display mayinclude, for example, a brief description and an exemplary set of themanufacturers and models numbers within the class. A quality class mayalso be associated with an appropriate range of item prices.

The buyer may then select a quality class based on his or her budget andexpectations. According to an embodiment of the present invention, byselecting a quality class the buyer agrees to accept any item that fallswithin the quality class. The controller 200 may have predeterminedmatching codes associated with each quality class.

In general, the buyer offer information will be broad, such as an itemcategory or a general description of the desired item, includinginformation (such as acceptable brands and features) that will help thecontroller 200 determine a quality class. For example, the buyer offerinformation may include one or more product features or accessories thatmust be included with the item.

The buyer offer information may also indicate acceptable item price andfeature trade-offs, mandatory item requirements, and transactionpreferences. For example, a buyer may be willing to accept any videocamera but prefers to receive a Video Home System-Compact (VHS-C) videocamera if one is available. Similarly, a buyer may insist on purchasingan item from a student or a charity.

In another example, the controller 200 may ask a buyer “Would you accepta television without surround sound for $25 less than your offer price?”or “Would you accept surround sound in place of picture-in-picturecapability?” The controller 200 may use answers to these questions tolocate a matching OTS. The controller 200 may also, according to oneembodiment, submit a counter-offer to the buyer if no OTS exactlymatches one or more features included in the OTB.

Such buyer offer information may be a valuable demand collection tooland help a manufacturer determine a perceived value of a feature. Forexample, if a buyer agrees to increase a buyer price by $5 in exchangefor a feature, the feature is worth about $5 to that buyer. Similarly,if most buyers will not accept a television with a remote control inexchange for an upgrade to a higher quality class, but will accept atelevision without picture-in-picture capability for such an upgrade, itcan be assumed that buyers consider a remote control more valuable thanpicture-in-picture capability.

According to one embodiment, a buyer may rank a number of featuresassociated with an OTB. For example, a buyer may indicate that onefeature is “necessary” (i.e., a matching offer must have the feature)and another is “desired.” The controller 200 may use these rankings tomatch offers, as well as to collect demand information.

With respect to an OTS, the seller offer information will typically bemore specific. For example, the seller offer information may indicatethe manufacturer, model number, condition, year, and color of an item.That is, the seller is describing a particular item that is beingoffered for sale. For example, the seller offer information may indicatethat the seller is interested in selling a “1993 SONY® WALKMAN®, workingcondition.”

In addition to information about a type of item or a particular item,offer information (i.e., buyer offer information or seller offerinformation) may include information about buyer or seller. For example,offer information may include a name, an address, contact information(e.g., an electronic mail address or telephone number) and/ordemographic information. The offer information may also include apayment identifier (e.g., a credit card number) that may be used by thecontroller 200 to collect transaction fees from buyers and/or sellers.The payment identifier may also be used to credit or debit an account asappropriate to complete a transaction (e.g., an amount based on an itemprice). According to one embodiment, such payments may be made over timein installments.

The offer information may also include an offer price. That is, an OTSmay include a seller price. The seller price may represent, for example,a seller asking price (e.g., an amount the seller would like to receive)and/or a seller minimum price (e.g., an amount below which the sellerwould not sell an item). Similarly, an OTB may include a buyer price(e.g., a buyer asking price and/or a buyer maximum price).

The offer information may also include a time limit, such as an offerperiod or expiration date. Such a time limit may be used, for example,by the controller 200 to reduce the chance that an OTS or an OTB willremain unmatched for an unreasonable amount of time (e.g., when morethan one potentially matching OTB is determined, the controller 200 mayselect the OTB with the nearest expiration date). According to otherembodiments, the controller 200 may determine a time limit or notify theseller or buyer when an offer can be removed. The controller 200 mayalso use such a time limit to anticipate supply and/or demand and moreaccurately manage an offer “pipeline.” For example, the controller 200may wait to match an OTB until after a holiday when fewer offers will bereceived. In exchange, the buyer may receive an extended warrantyperiod, a higher quality item or a subsidy from the controller 200.

The offer information may also include delivery information, such as ashipping preference. For example, a buyer may choose to pick-up an itemat a specific place or have the item shipped to his or her home. In oneembodiment the controller 200 displays a map, which a buyer (or seller)can use to specify how far he or she is willing to travel to pick-up (ordeliver) an item.

During a transaction, the controller 200 may provide a subsidy offer toa buyer (and/or a seller). For example, a subsidy offer may be providedto a buyer when he or she initially registers with the controller 200,when the buyer submits an OTB, when no potentially matching OTS islocated, or prior to an expiration date associated with the OTB. Forexample, the buyer may receive a message stating “Sign up for AT&T® longdistance service, and we'll advance you in our matching queue—you'll geta better product in less time!” Several types of subsidy offers aredescribed in U.S. patent application Ser. No. 09/274,281 entitled“Method and Apparatus for Providing Cross-Benefits via a CentralAuthority.” The buyer's response to the subsidy offer (e.g., anacceptance) may be received and stored by the controller 200.

According to one embodiment, a reward, such as payment of an awardamount or is the availability of a subsidy offer, may be provided to aparty based on the corresponding demand for his or her offer. Forexample, consider a seller who submits an OTS for an item. If a largenumber of offers to buy are currently pending (or have historically beensubmitted) for that type of item (and/or at the seller's price), areward may be provided to the seller. Similarly, a reward may beprovided to a buyer who submits a popular OTB. The reward may bepredetermined or may be based on, for example: supply information,demand information, the item category, and/or the item price.

According to another embodiment, the controller 200 may notify the buyerof an incentive available in exchange for receiving information aboutnewly introduced items (e.g., information about a new computer modelwhen the buyer is offering to purchase a computer), or a willingness topurchase a substitute item or a supplemental item (e.g. a tonercartridge or a toner cartridge subscription when the buyer is offeringto purchase a printer).

According to one embodiment, a seller's OTS and/or a buyer's OTB may be“binding.” That is, a penalty may be applied if the seller and/or thebuyer do not complete a transaction. For example, the controller 200 maynotify a buyer of a penalty (e.g., a predetermined or variable penaltyamount). A penalty may be applied, for example, if the buyer fails topick-up an item. The controller 200 may similarly notify a seller of apenalty imposed, for example, if he or she misrepresents the quality ofan item sold to a buyer.

According to one embodiment, an offer may be assigned a priorityranking. For example, when more than one OTB is determined to be apotentially matching offer, an OTB having the highest priority rankingmay be selected by the controller 200. Thus, a higher priority rankingfor an offer may, for example, enable an OTB to be matched more quicklyor with a more favorable OTS (e.g. an OTS associated with a lower priceand/or a higher quality class).

A priority ranking may be determined, for example, initially when abuyer submits an OTB. The priority ranking may also change dynamicallybefore the OTB is matched. According to one embodiment, the controller200 may allow a buyer to pay for an improved priority ranking (either onan offer-by-offer basis or with respect to all of the parties offers).For example, a buyer may receive a message asking “Will you pay $2.00 tobe given high priority in our matching system?”

According to another embodiment, the priority ranking is based on ameasured desirability of the particular type of item associated with theOTB. For example, if a large number of sellers have offered, or arecurrently offering, to sell the same type of item, the controller 200may assign the a high priority ranking to the OTB (e.g., because thereis a large supply of that type of item). Similarly, if a large number ofbuyers have been interested, or are currently interested, in purchasingthe same type of item, the controller 200 may assign the a low priorityranking to the OTB (e.g., because there is a large demand for that typeof item).

A priority ranking may also be based on how long an offer has remainedunmatched and/or how close an offer is to an expiration date. Forexample, as a buyer's OTB remains unmatched the controller 200 mayincrease a priority ranking to expedite matching. A priority ranking mayalso be based on delivery information. For example, a buyer may receivea high priority ranking if he or she is more flexible about where andwhen an item may be delivered. A priority ranking may also be based onpast transactions between a buyer and the controller 200. For example,the controller 200 may store “reputation” information based on problemsthat have occurred in the past (e.g., failing to deliver an item orprovide a payment at an appropriate time). A priority ranking for anewly registered buyer may start out high to encourage the buyer to usethe transaction system 100 in the future.

A priority ranking may also be based on whether the buyer has accepted asubsidy offer. That is, a buyer who accepts a subsidy offer may receivea higher priority ranking because of his or her acceptance. A priorityranking may also be based on whether the buyer has submitted anappropriate buyer price with the OTB (e.g., whether the buyer price iswithin an appropriate item price range suggested by the controller 200).

The buyer information may include a quality class of the item he or sheis interested in purchasing. For example, the buyer may indicate that heor she is interested in a purchasing a stereo having a quality class of“better.” According to another embodiment, the controller 200 maydetermine a quality class based on the buyer offer information (e.g.,based on the particular features the stereo must have). According toanother embodiment, a quality class may be predicted based on thebuyer's past history with the transaction system 100.

The quality classes may be organized based on, for example, a number offeatures, item manufacturers, an item condition, and/or accessoriesassociated with an item. For example, the highest quality class may havethe most features, the most exclusive manufacturers, at least a gooditem condition, and the most accessories. In contrast, the lowestquality class may have the fewest features, the most number ofacceptable manufacturers, a lower item condition, and fewer accessories.

The quality classes may be altered periodically based on current data(e.g., a previously desirable feature becomes obsolete and an item withsuch a feature is moved to a lower quality class). For example, when anOTB is received, the controller 200 may assign a “score” to the OTBbased on the item description provided by the buyer. The buyer maysubmit, for example, an item category, a minimum acceptable condition,one or more acceptable brands, and desired features and accessories.Based on the description, the controller 200 can score the OTB and,based on the score, determine an appropriate quality class.

Note that an OTB may fall into more than one quality class. For example,an OTB may be assigned to both a “better” and a “best” class. That is,the best class may simply be a subset of the better class.

According to an embodiment of the present invention, the controller 200retrieves an appropriate item price range associated with a qualityclass and outputs the range to the buyer device 20. The appropriate itemprice range may, for example, help a buyer select a buyer price toinclude in his or her OTB. The appropriate item price range may bedetermined based on, for example, historical, current or predicted dataand may be adjusted by the controller 200 when appropriate. According toone embodiment, the buyer is free to determine any buyer price (e.g.,including a buyer price outside of the range suggested by the controller200). In another embodiment, the buyer price must be within theappropriate item price range. Note that an appropriate item price rangefor a quality class may be different for an OTB and an OTS.

For example, consider a buyer who is interested in purchasing atelevision. The controller 200 displays a list of television featuresand brands to the buyer. The buyer selects “color,” “remote control,”and “picture-in-picture capability” as desired features and indicatesthat he or she is willing to accept televisions made by “allmanufacturers.” The controller 200 determines that the buyer's selectedfeatures are associated with both a “good” and a “better” quality class,but not a “best” quality class (which has a more limited selection ofmanufacturers). The controller 200 assigns the OTB to the “better”quality class and displays an appropriate item price range of $150-$250to the buyer. The buyer may either select a buyer price within theappropriate item price range, or name a different price.

Based on the compatibility of offer codes and offer price, thecontroller 200 attempts to retrieve and match at least one matching OTSto the OTB. For example, the controller 200 may search for all matchingOTS codes compatible with the OTB matching code (e.g., a potentiallymatching OTS has at least the features described by the OTB). That is,an OTS that matches the OTB item category (e.g., “television”) but doesnot match the required features (e.g., “at least a 27 inch screen”) orquality class (e.g., “better”) of the OTB is eliminated from the search.

The controller 200 also eliminates an OTS if the seller price exceedsthe buyer price associated with the OTB. If the OTB is associated withboth an asking price and a maximum price, the controller 200 may decideto base the search on either price. This decision may be based on, forexample, whether the controller 200 is interesting in improving abenefit associated the buyer (i.e., by matching his or her askingprice), or whether the controller 200 is interested in completingtransactions (i.e., by matching the buyer's maximum price).

If the controller 200 does not find a matching OTS, the OTB may bestored in a database and the controller 200 may attempt to find a matchfor the OTB again later. According to another embodiment, the OTB issimply rejected if the controller 200 does not initially find a matchingOTS.

According to one embodiment, if a single matching OTS is found, thecontroller 200 automatically binds the OTB and the matching OTS.According to another embodiment, the controller 200 may notautomatically bind an OTB with an OTS when a single potentially matchingOTS is found (e.g., the controller may wait two days to determine ifanother potentially matching OTS is submitted).

Consider, for example, a buyer who submits an OTB for a television withan asking price of $100 and a maximum price $125. The controller 200receives the OTB, generates a matching code, assigns it to a “better”quality class, and searches for an OTS with a similar (or identical)matching code. The controller 200 also eliminates an OTS if it has aminimum price higher than $100. If a single matching OTS remains afterthis elimination, the controller 200 automatically binds that OTS andthe OTB and completes the transaction. If no matching OTS remains, thecontroller 200 searches for an OTS with a similar (or identical)matching code and a minimum price less than $125. If one such OTS isfound, the controller 200 automatically binds the matching OTS and theOTB. If there is more than one matching OTS, the controller 200 may usematching objectives to select an OTS as described herein.

According to one embodiment of the present invention, the controller 200calculates and adds a subsidy amount to an OTB and/or an OTS in order tofind a matching offer. For example, the controller 200 may fund aspecial account or budget to subsidize offers and increase the number ofsuccessful matches. The controller 200 may set a maximum amount tosubsidize each offer, or use subsidy rules to determine an amount. Thecontroller 200 may, for example, add the subsidy amount to the OTB andsearch for a matching OTS.

If a matching OTS is found, the controller 200 determines if there is adiscrepancy between the seller price and the buyer price adjusted by thesubsidy amount. In other words, the controller 200 calculates [(buyerprice+subsidy amount)−seller price], which represents a surplus amountof money. The surplus may be, for example, kept by the controller 200(e.g., as profit or to be used with respect to another OTS or OTB) orpassed onto the seller and/or buyer.

In another embodiment, the controller 200 may find the closest matchingoffer and determine a subsidy amount needed to complete that match. Ifit is equal to or less than a predetermined amount (or percentage), thecontroller 200 may automatically add the subsidy to the offer andcomplete the match.

Consider, for example, a controller 200 that receives an OTB including abuyer price of $100. Although at least one OTS matches based on thematching code, no OTS has a seller price of $100 or less. The controller200 retrieves subsidy rules and determines that the OTB can besubsidized for up to 20% of the buyer price. The controller 200 adds $20to the buyer price and again attempts to find a matching OTS. Thecontroller 200 now finds a matching OTS with a seller price of $115. Thecontroller 200 automatically binds both the OTB and the matching OTS,and determines that the extra money (i.e. $5) is passed on to theseller.

In one embodiment, the controller 200 receives an OTB or OTS andcalculates and presents an offer to finance the transaction. Offering tofinance a purchase in this way may enable the controller 200 to completemore transactions, as well as earn a profit on the interest earned bythe finance offer. One or more subsidies may also be calculated andincluded in the finance offer.

According to one embodiment of the present invention, the controller 200uses one or more matching objectives to select a single offer from agroup of potentially matching offers. The matching objectives mayrepresent, for example, one or more goals of the controller 200. Thematching objectives may be a hierarchy of rules that are applied until asingle matching offer remains. According to one embodiment, the matchingobjectives are predetermined and/or are periodically re-organized (e.g.,automatically by the controller 200 or manually by an operator)depending on objectives of the controller 200 (e.g., increasing a profitor increasing a number of completed transactions).

In one embodiment, the controller 200 changes the hierarchy of the rulesafter a predetermined number of transactions have taken place (e.g.after accumulating a statistically significant sample pool) anddetermines which matches are more beneficial (e.g., increase profit,reduce customer service complaints, or increase the number of completedtransactions). Note that the matching objectives may be the same, or maybe different, with respect to an OTB and an OTS.

A matching objectives rule may be based on, for example, priorityrankings associated with a buyer and/or a seller. For example, an offerwith higher priority ranking may match more quickly, or morebeneficially, than an offer with a lower priority ranking. In this case,if an OTB is received with a high buyer price, an OTS with a higherpriority ranking may be selected by the controller 200.

A matching objectives rule may also be based on an item price. Forexample, the controller 200 may periodically determine which price amongseveral is “optimal” for matching. That is, if there are four matchingoffers with four different prices, the controller 200 may decide thatthe highest priced one should be filled first. The controller 200 mayadjust such a pricing rule (e.g., automatically or manually) whenappropriate.

A matching objectives rule may also be based on whether the buyer andseller have previously completed a transaction with each other. If so,the controller 200 may determine if the previous transaction wassuccessful If the transaction was not successful (e.g., the buyer hadsubmitted a complaint about the seller), the controller 200 mayeliminate the associated offer.

A matching objectives rule may also be based on how long a matchingoffer has remained unmatched. For example, the controller 200 may selectan older offer, a newer offer, an offer that is closest to an expirationdate, or an offer that is farthest away from an expiration date.

A matching objectives rule may also be based on the location of thebuyer and/or seller. For example, the controller 200 may select thepotentially matching offer associated with a buyer who lives in the sametown as the seller. Similarly, other information about the buyer and theseller may be used when determining a matching OTB and OTS (e.g., theage of the buyer and/or the seller).

A matching objectives rule may also be based on the identity of theseller and/or the buyer. For example, the controller 200 may “own”certain items and store them in a warehouse. In this case, warehouseitems may be matched more quickly. Alternatively, warehouse items may bematched less quickly (e.g., to increase seller satisfaction).

A matching objectives rule may also be based on whether the item is amanufacturer-promoted item. For example, a manufacturer may pay thecontroller 200 a fee to match a particular brand or model number first.

Once the matching objectives are retrieved, the controller 200 appliesthem to each potential matching OTS (e.g., each OTS having a “pending”status) until a single matching OTS remains. The eliminated offers areassigned an “unmatched” status, and the selected OTS and the OTB areassigned a “matched” status.

The appropriate seller and the buyer are notified, and the transactionis completed. According to one embodiment, the controller 200 chargesthe buyer and/or seller a commission fee (e.g., a predetermined amountor a percentage of the item price) either before or after thetransaction is complete. The controller 200 may also arrange for theseller to sell the item to the buyer. For example, the controller 200may debit an account associated with the buyer and credit an accountassociated with the seller. The controller 200 may also, according toone embodiment of the present invention, arrange for the delivery of theitem (e.g., sending a delivery service to the seller) and/or arrange toinspect the item (e.g., by receiving the item from the seller,inspecting the item and delivering the item to the buyer).

Controller

FIG. 2 illustrates a controller 200 that is descriptive of the deviceshown in FIG. 1 according to an embodiment of the present invention. Thecontroller 200 comprises a processor 210, such as one or more INTEL®Pentium® processors, in communication with a communication device 220configured to communicate through a communication network (not shown inFIG. 2). The communication device 220 may be used to communicate, forexample, with: one or more seller devices 10, one or more buyer devices20 and/or one or more subsidy provider devices 30.

The processor 210 is also in communication with a storage device 230.The storage device 230 may comprise any appropriate information storagedevice, including combinations of magnetic storage devices (e.g.,magnetic tape and hard disk drives), optical storage devices andsemiconductor memory devices, such as Random Access Memory (RAM) devicesand Read Only Memory (ROM) devices.

The storage device 230 stores a program 215 for controlling theprocessor 210. The processor 210 performs instructions of the program215, and thereby operates in accordance with the present invention. Forexample, the processor 210 may receive seller offer informationassociated with an item being offered for sale by a seller, receivebuyer offer information associated with a buyer offering to make apurchase, determine an evaluation rule, match the seller offerinformation and the buyer offer information based on the evaluationrule, and arrange for the seller to sell the item to the buyer.

According to another embodiment, the processor 210 may receive selleroffer information associated with an item being offered for sale by aseller, determine an appropriate item price based on the seller offerinformation, transmit information associated with the appropriate itemprice to the seller, and determine a seller price. Similarly, theprocessor 210 may receive buyer offer information associated with abuyer offering to make a purchase, determine an appropriate item pricebased on the buyer offer information, transmit information associatedwith the appropriate item price to the buyer, and determine a buyerprice.

According to another embodiment, the processor 210 may receive selleroffer information associated with an item being offered for sale by aseller, receive buyer offer information associated with a buyer offeringto make a purchase, determine a subsidy, the subsidy being associatedwith a benefit from a subsidy provider to be applied to the transaction,and arrange for the seller to provide the item to the buyer inaccordance with the benefit.

The program 215 may be stored in a compressed, uncompiled or encryptedformat. The program 215 may furthermore include program elements thatmay be necessary, such as an operating system, a database managementsystem and “device drivers” used by the processor 210 to interface withperipheral devices. Appropriate program elements are known to thoseskilled in the art.

Note that the processor 210 and the storage device 230 may be, forexample: (i) located entirely within a single computer or othercomputing device or (ii) located in separate devices coupled through acommunication channel. In one embodiment, the controller 200 comprisesone or more computers that are connected to a remote database server.

As used herein, information may be “received” by, for example: (i) thecontroller 200 from any other device or (ii) a software application ormodule within the controller 200 from another software application,module or any other source. Similarly, information may be “transmitted”to, for example: (i) another device from the controller 200 or (ii) asoftware application or module within the controller 200 from anothersoftware application, module or any other source.

As shown in FIG. 2, the storage device 230 also stores: a buyer database300 (described with respect to FIG. 3); a seller database 400 (describedwith respect to FIG. 4); an offer to buy database 500 (described withrespect to FIG. 5); an offer to sell database 600 (described withrespect to FIG. 6); an item category database 700 (described withrespect to FIG. 7); a quality class database 800 (described with respectto FIG. 8); a matching objectives database 900 (described with respectto FIG. 9); a rule database 1000 (described with respect to FIG. 10); asubsidy rules database 1100 (described with respect to FIG. 11); asubsidy database 1200 (described with respect to FIG. 12); and atransaction database 1300 (described with respect to FIG. 13).

Examples of databases that may be used in connection with thetransaction system 100 will now be described in detail with respect toFIGS. 3 through 13. Each figure depicts a database in which the data isorganized according to a data structure in accordance with embodimentsof the present invention. The data may be stored, for example, on acomputer readable medium and be accessible by a program executed on adata processing system. The schematic illustration and accompanyingdescription of these databases are exemplary, and any number of otherdatabase arrangements could be employed besides those suggested by thefigures.

Buyer Database

Referring to FIG. 3, a table represents one embodiment of the buyerdatabase 300 that may be stored at the controller 200 according to anembodiment of the present invention. The table includes entriesidentifying buyers who may offer to make a purchase. The table alsodefines fields 302, 304, 306, 308, 310, 312, 314, 316, 318 for each ofthe entries. The fields specify: a buyer identifier 302; a buyer name304; an address 306; a contact identifier 308; associated offers to buy310; a priority ranking 312; a payment identifier 314; accepted subsidyoffers 316; and a current balance 318. The information in the buyerdatabase 300 may be created and updated, for example, when a buyerregisters with the controller 200.

The buyer identifier 302 may be, for example, an alphanumeric codeassociated with a buyer who may offer to make a purchase via thetransaction system 100. The buyer identifier 302 may be, for example,generated by the controller 200 or the buyer (e.g., when the buyerselects a user name and password).

For each buyer, the buyer database 300 may also store the buyer name 304and the address 306 associated with the buyer. This information may bebased on, for example, information provided by the buyer when he or sheregisters with the controller 200.

For each buyer, the buyer database 300 may also store the contactidentifier 308 that the controller 200 may use to contact the buyer(e.g., to inform the buyer that an OTB has been matched). The contactidentifier 308 may be, for example, an electronic mail address or atelephone number and may be based on, for example, information providedby the buyer when he or she registers with the controller 200 or submitsan OTB.

The buyer database 300 may also store an indication (e.g., anidentifier) of the associated offers to buy 310 that have been submittedby the buyer as well as the priority ranking 312 associated with thebuyer. For example, as illustrated by the first entry of FIG. 3, thebuyer having a buyer identifier of “B-1111” has submitted two offers tobuy (i.e., “OTB-0000” and “OTB-3333”) and has a priority ranking 312 of“1.”

The payment identifier 314 stored in the buyer database 300 may be usedby the controller 200, for example, to arrange for the buyer to pay foran item, to charge the buyer a fee in exchange for facilitating atransaction, and/or to apply a penalty to the buyer.

The accepted subsidy offers 316 may store an indication (e.g., anidentifier) associated with each subsidy offer that the buyer hasaccepted. Each of the accepted subsidy offers 316 may be associatedwith, for example, a subsidy amount to be used in connection with an OTBin exchange for the performance of a task by the buyer (e.g., inexchange for answering five question or subscribing to a magazine).According to another embodiment, an accepted subsidy offer may beassociated with a specific OTB (instead of with a buyer).

The current balance 318 may indicate, for example, fees, item pricesand/or penalty amounts that the buyer owes to the controller 200 and/orto one or more sellers.

Seller Database

Referring to FIG. 4, a table represents one embodiment of the sellerdatabase 400 that may be stored at the controller 200 according to anembodiment of the present invention. The table includes entriesidentifying sellers who may offer to sell an item. The table alsodefines fields 402, 404, 406, 408, 410, 412, 414, 416, 418 for each ofthe entries. The fields specify: a seller identifier 402; a seller name404; an address 406; a contact identifier 408; associated offers to sell410; a priority ranking 412; a payment identifier 414; accepted subsidyoffers 416; and a current balance 418. The information in the sellerdatabase 400 may be created and updated, for example, when a sellerregisters with the controller 200.

The seller identifier 402 may be, for example, an alphanumeric codeassociated with a seller who may be interested in selling an item viathe transaction system 100. The seller identifier 402 may be, forexample, generated by the controller 200 or the seller (e.g., when theseller selects a user name and password).

For each seller, the seller database 400 may also store the seller name404 and the address 406 associated with the seller This information maybe based on, for example, information provided by the seller when he orshe registers with the controller 200.

For each seller, the seller database 400 may also store the contactidentifier 408 that the controller 200 may use to contact the seller(e.g., to inform the seller that an OTS has been matched). The contactidentifier 408 may be, for example an electronic mail address or atelephone number and may be based on, for example, information providedby the seller when he or she registers with the controller 200 orsubmits an OTS.

The seller database 400 may also store an indication (e.g., anidentifier) of the associated offers to sell 410 that have beensubmitted by the seller as well as the priority ranking 12 associatedwith the seller. For example, as illustrated by the first entry of FIG.4, the seller having a seller identifier of “S-1111” has submitted twooffers to sell (i.e., “OTS-5555” and “OTS-3333”) and has a priorityranking 412 of “1.”

The payment identifier 414 stored in the seller database 400 may be usedby the controller 200, for example, to arrange for the seller to receivepayment for an item, to charge the seller a fee in exchange forfacilitating a transaction, and/or to apply a penalty to the seller.

The accepted subsidy offers 416 may store an indication (e.g., anidentifier) associated with the subsidy offers that the seller hasaccepted. Each of the accepted subsidy offers 416 may be associatedwith, for example, a subsidy amount to be used in connection with an OTSin exchange for the performance of a task by the seller. According toanother embodiment, an accepted subsidy offer may be associated with aspecific OTS.

The current balance 418 may indicate, for example, fees, item pricesand/or penalty amounts that the seller owes to the controller 200 and/orto one or more buyers.

Note that the buyer database 300 and the seller database 400 maycomprise a single database. In this case, the database may store bothOTS and OTB information regarding each person.

Offer to Buy Database

Referring to FIG. 5, a table represents one embodiment of the offer tobuy database 500 that may be stored at the controller 200 according toan embodiment of the present invention. The table includes entries eachidentifying an offer to purchase an item. The table also defines fields502, 504, 506, 508, 510, 512, 514, 516 for each of the entries. Thefields specify: an offer to buy identifier 502; a date received 504; anitem category 506; a matching code 508; a quality class 510; an askingprice 512; a maximum price 514; and a status 516. The information in theoffer to buy database 500 may be created and updated, for example, whenan OTB is received from a buyer.

The offer to buy identifier 502 may be, for example, an alphanumericcode associated with a buyer's offer to purchase an item. The offer tobuy identifier 502 may be, for example, generated by the controller whena buyer submits an OTB and may be based on the associated offers to buy310 stored in the buyer database 300. The date received may indicate thedate (and time of day) that the OTB was received by the controller 200.

The item category 506 may be, for example, an alphanumeric code and mayindicate the type of item the buyer is interested in purchasing. Theitem category 506 may be, for example, selected by the buyer or bedetermined by the controller 200 based on information received from thebuyer.

The matching code 508 may be, for example, an alphanumeric code and mayindicate in detail the type of item the buyer is interested inpurchasing (e.g., including an age of the item, one or more featuresassociated with the item and acceptable product manufacturers). Thematching code 508 may be, for example, determined by the controller 200based on information received from the buyer. The quality class 510 maybe, for example, an alphanumeric code and may indicate a level ofquality associated with the item the buyer is interested in purchasing.The quality class 510 may be, for example, selected by the buyer. Thequality class 510 may instead be determined by the controller 200 basedon information received from the buyer (e.g., based on the item category506, the matching code 508, the asking price 512, and/or the maximumprice 514).

The asking price 512 and the maximum price 514 may represent an amountthe buyer would like to pay and the highest amount the buyer is willingto pay for an item, respectively. The asking price 512 and the maximumprice 514 may be, for example, selected by the buyer (e.g., when thebuyer selects one of a number of price selections determined by thecontroller 200) or be determined by the controller 200 based oninformation received from the buyer (e.g., based on the item category506, the matching code 508, and/or the quality class 510).

The status 516 represents the status of the OTB. For example, when theOTB is initially received it may be assigned a status 516 of “open.”When the OTB is being evaluated as a possible match for an OTS, it maybe assigned a status 516 of “pending.” When the OTB is matched with anOTS, it may be assigned a status 516 of “filled.” When the buyer haspurchased and received the item from a seller, the OTB may be assigned astatus 516 of “complete.” Finally, if an expiration date associated withthe OTB has passed, it may be assigned a status 516 of “expired” (i.e.,it will not be considered as a possible match in the future).

Thus, FIG. 5 depicts a database in which the data is organized accordingto a data structure according to an embodiment of the present invention.The data structure includes an offer to buy data object (i.e., the offerto buy identifier 502) representing an offer to purchase an item; and amatching code data object 508 representing information that may be usedto match the OTB with an OTS.

Offer to Sell Database

Referring to FIG. 6, a table represents one embodiment of the offer tosell database 600 that may be stored at the controller 200 according toan embodiment of the present invention. The table includes entries eachidentifying an offer to sell an item. The table also defines fields 602,604, 606, 608, 610, 612, 614, 616 for each of the entries. The fieldsspecify: an offer to sell identifier 602; a date received 604; an itemcategory 606; a matching code 608; a quality class 610; an asking price612; a minimum price 614; and a status 616. The information in the offerto sell database 600 may be created and updated, for example, when atOTS is received from a seller.

The offer to sell identifier 602 may be, for example, an alphanumericcode associated with a seller's offer to sell an item. The offer to sellidentifier 602 may be, for example, generated by the controller when aseller submits an OTS and may be based on the associated offers to sell410 stored in the seller database 400. The date received may indicatethe date (and time of day) that the OTS was received by the controller200.

The item category 606 may be, for example, an alphanumeric code and mayindicate the type of item the seller is interested in selling. The itemcategory 606 may be, for example, selected by the seller or bedetermined by the controller 200 based on information received from theseller.

The matching code 608 may be, for example, an alphanumeric code and mayindicate in detail the type of item the seller is interested in selling(e.g., including an age of the item, one or more features associatedwith the item and a product manufacturer). The matching code 608 may be,for example, determined by the controller 200 based on informationreceived from the seller. The quality class 610 may be, for example, analphanumeric code and may indicate a level of quality associated withthe item the seller is interested in selling. The quality class 610 maybe, for example, selected by the seller. The quality class 610 mayinstead be determined by the controller 200 based on informationreceived from the seller (e.g., based on the item category 606, thematching code 608, the asking price 612, and/or the minimum price 614).

The asking price 612 and the minimum price 614 may represent an amountthe seller would like to receive and the lowest amount the seller iswilling to accept in exchange for an item, respectively. The askingprice 612 and the maximum price 614 may be, for example, selected by theseller (e.g., when the seller selects one of a number of priceselections determined by the controller 200) or be determined by thecontroller 200 based on information received from the seller (e.g.,based on the item category 606, the matching code 608, and/or thequality class 610).

The status 616 represents the status of the OTS. For example, when theOTS is initially received it may be assigned a status 616 of“unmatched.” When the OTS is being evaluated as a possible match for anOTB, it may be assigned a status 616 of “pending.” When the OTS ismatched with an OTB, it may be assigned a status 616 of “filled.” Whenthe seller has sold and provided the item to a buyer, the OTS may beassigned a status 616 of “complete.” Finally, if an expiration dateassociated with the OTS has passed, it may be assigned a status 616 of“expired” (i.e., it will not be considered as a possible match in thefuture).

Thus, FIG. 6 depicts a database in which the data is organized accordingto a data structure according to an embodiment of the present invention.The data structure includes an offer to sell data object (i.e., theoffer to sell identifier 602) representing an offer to sell an item; anda matching code data object 608 representing information that may beused to match the OTS with an OTB.

Item Category Database

Referring to FIG. 7, a table represents one embodiment of the itemcategory database 700 that may be stored at the controller 200 accordingto an embodiment of the present invention. The table includes entriesidentifying item categories. The table also defines fields 702, 704 foreach of the entries. The fields specify: an item category identifier702; and a category description. The information in the item categorydatabase 700 may be created and updated, for example, by an operatorassociated with the controller 200 and/or based on information receivedfrom buyers, sellers (e.g., when a predetermined number of sellersbecome interested in offering a new type of item for sale via thecontroller 200), and/or product manufacturers.

The item category identifier 702 may be, for example, an alphanumericcode associated with a type of item that may be exchanged via thecontroller 200. The item category identifier 702 may also be based on,or associated with, the item category identifier 506 stored in the offerto buy database 500 and/or the item category identifier 606 stored inthe offer to sell database 600. For each item category, the itemcategory database 700 also stores the associated category description704. The category description 704 may be, for example, a textual,graphical, and/or audio description of the item category. The categorydescription 704 may be transmitted, for example, to a seller device 10or a buyer device 20 to help the seller or buyer determine anappropriate item category.

Quality Class Database

Referring to FIG. 8, a table represents one embodiment of a record ofthe quality class database 800 that may be stored at the controller 200according to an embodiment of the present invention. The table includesrecords associated with an item category. Each record includes entriesidentifying features that may be associated with an item in thatcategory.

The table also defines fields 804, 806, 808, 810 for each of theentries. The fields specify: a feature 804; a good class 806; a betterclass 808; and a best class 810. The information in the quality classdatabase 800 may be created and updated, for example, by an operatorassociated with the controller 200 and/or based on information receivedfrom buyers, sellers, and/or manufacturers.

The item category identifier 802 may be, for example, an alphanumericcode associated with a type of item that may be exchanged through thecontroller 200. The item category identifier 802 may also be based on,or associated with, the item category identifier 506 stored in the offerto buy database 500, the item category identifier 606 stored in theoffer to sell database 600, and/or the item category identifier 702stored in the item category database 700.

For each item category identifier 802, the quality class database 800may also store a feature 804 associated with the item category, alongwith an indication of whether the feature is associated with one or morequality classes (i.e., good class 806, better class 808, and best class810).

For example, the record illustrated in FIG. 8 represents the itemcategory identifier of “I-C111” which, as shown by the categorydescription 704 in FIG. 7 is associated with a “point and shoot camera.”Referring again to FIG. 8, a point and shoot camera may have a feature804 identified as “2× zoom lens,” and such a 2× zoom lens is associatedwith the best class 810 and the better class 808 (i.e., as reflected bythe “yes”), but not with the good class 806 (i. e., as reflected by the“---”).

The feature 804 may also indicate which manufacturers are associatedwith each quality class and a suggested price range that is appropriatefor each quality class.

Matching Objectives Database

Referring to FIG. 9, a table represents one embodiment of the matchingobjectives database 900 that may be stored at the controller 200according to an embodiment of the present invention. The table includesentries identifying categories of rules that may be used when matchingan OTS and an OTB. The table also defines fields 902, 904, 906, 908 foreach of the entries. The fields specify: a rule category identifier 902;a rule category description 904; a matching priority 906; and a currentrule 908. The information in the matching objectives database 900 may becreated and updated, for example, manually by an operator associatedwith the controller 200 and/or automatically based on the performance ofthe controller 200 (e.g., based on a profit being made by the controller200 or a number of transactions being completed via the controller 200).

The rule category identifier 902 may be, for example, an alphanumericcode associated with a set a rules that may be used to match an OTS andan OTB.

For each rule category, the matching objectives database 900 also storesthe rule category description 904 that describes the type of rulesincluded in the rule category. For example, the rule category may bedescribed as “pricing rules” (e.g., the rules in the category match anOTS and an OTB based on a price).

According to an embodiment of the present invention, the rulescategories are arranged in a hierarchy. That is, each rule category isassociated with a matching priority 906 that reflects the order in whichdifferent types of rules should be used to match an OTS and an OTB. Forexample, as illustrated in FIG. 9, pricing rules (having a matchingpriority 906 of “1”) may be used first by the controller 200 when morethan one potentially matching OTS exists for an OTB (or vice versa). Ifmore than one potentially matching is OTS exists even after the pricingrules are applied (e.g., eliminating some of the potentially matchingoffers), the controller 200 would next apply the priority ranking rules(having a matching priority 906 of “2”). Such priority ranking rulesmay, for example, eliminate other offers based on the priority ranking312 associated with the buyer and the priority ranking 412 associatedwith the seller. The controller 200 continues to select a rule from eachrule category until a single OTS is matched with the OTB. According toone embodiment, a random process may also be used to match an OTS withan OTB (e.g., when a number of different offers may be matched).

The matching priority 906 may be updated, for example, manually by anoperator associated with the controller 200 and/or automatically basedon the performance of the controller 200 (e.g., the hierarchy may bere-organized based on a profit being made by the controller 200).

The current rule 908 in the matching objectives database 900 indicateswhich rule in the rule category is currently being applied by thecontroller 200. For example, there may be a number of different rules inthe pricing rules category. In this case, the current rule 908 mayreflect which pricing rule should be used by the controller 200 to matchan OTS and an OTB.

Rule Database

Referring to FIG. 10, a table represents one embodiment of a record ofthe rule database 1000 that may be stored at the controller 200according to an embodiment of the present invention. The table includesrecords associated with a rule category that may be used to match an OTSand an OTB. Each record includes entries identifying one or more rulesin that rule category.

The table also defines fields 1004, 1006 for each of the entries. Thefields specify: a rule identifier 1004; and a rule description 1006. Theinformation in the rule database 1000 may be created and updated, forexample, manually by an operator associated with the controller 200and/or automatically based on the performance of the controller 200.

The rule category identifier 1002 may be, for example, an alphanumericcode associated with a set a rules that may be used to match an OTS andan OTB. The rule category identifier 1002 may also be based on, orassociated with, the rule category identifier 902 stored in the matchingobjectives database 900.

For each rule category, the rule database 1000 may also store a ruleidentifier 1004. The rule identifier may be, for example, analphanumeric code associated with a particular rule that may be used tomatch an OTS and an OTB. The rule identifier 1004 may also be based on,or associated with, the current rule 908 stored in the matchingobjectives database 900.

The rule description 1006 describes the particular rule in the rulecategory. For example, a particular rule in the pricing rules categorymay be described as “match all OTB to high OTS” (e.g., all OTB arematched with the OTS having the highest seller price).

Subsidy Rules Database

Referring to FIG. 11, a table represents one embodiment of the subsidyrules database 1100 that may be stored at the controller 200 accordingto an embodiment of the present invention. The table includes entriesidentifying rules that may be applied to determine if a subsidy will beadded to an OTS and/or an OTB. The table also defines fields 1102, 1104,1106, 1108 for each of the entries. The fields specify: a subsidy ruleidentifier 1102; a condition 1104; a subsidy rule 106; and a discrepancyrule 1108. The information in the subsidy rules database 1100 may becreated and updated, for example, manually by an operator associatedwith the controller 200 and/or based on information received from one ormore subsidy provider devices 30.

The subsidy rule identifier 1102 may be, for example, an alphanumericcode associated with a rule that may be applied by the controller 200 todetermine if a subsidy will be added to an OTS and/or an OTB.

For each subsidy rule the subsidy rule database 1100 also stores thecondition 1104 that must be satisfied in order for the rule to beapplied. For example, a rule may only be applied if a price (e.g., abuyer price, or a seller's minimum price) is more than $200.

The subsidy rule 1106 indicates the rule that will be applied by thecontroller 200 regarding a subsidy that will be added to an OTS and/oran OTB (e.g., a subsidy amount the controller 200 will contribute inorder to complete a transaction). For example, a subsidy rule 1106 maycomprise adding up to $30 to an OTS.

The discrepancy rule 1108 indicates how the controller 200 may handleany funds that remain after a subsidy is used with respect to an OTSand/or an OTB. For example, the controller may add $10 in order to matchan OTB having a maximum price 514 of $90 with an OTS having a minimumprice 614 of $95. In this case, the controller 200 may keep the extra$5, or provide the extra amount to the seller and/or the buyer.

Subsidy Database

Referring to FIG. 12, a table represents one embodiment of the subsidydatabase 1200 that may be stored at the controller 200 according to anembodiment of the present invention. The table includes entriesidentifying subsidies that may be offered to a buyer and/or a seller.The table also defines fields 1202, 1204, 1206, 1208 for each of theentries. The fields specify: a subsidy identifier 1202; a subsidyprovider 1204; a subsidy description 1206; and a current balance 1208.The information in the subsidy database 1200 may be created and updated,for example, based on information received from a subsidy providerdevice 30.

The subsidy identifier 1202 may be, for example, an alphanumeric codeassociated with a subsidy that may be offered via the controller 200.The subsidy identifier may be based on, or associated with, the acceptedsubsidy offers 315 stored in the buyer database 300 and/or the acceptedsubsidy offers 416 stored in the seller database 400. The subsidyprovider 1204 may indicate the party that is supplying funds for thesubsidies. For example, the subsidy provider 1204 may be a manufacturer,a third party or the controller 200.

The subsidy description 1206 may be a textual, graphical, or audiodescription of the subsidy offer. For example, the subsidy description1206 may indicate that $50 will be added to an OTB if the buyersubscribes to a long distance service associated with the subsidyprovider 1204. The current balance 1208 may indicate an amount ofavailable funds that may be used to provide subsidies to buyers and/orsellers. For example, the current balance 1208 may be increased based oninformation received from a subsidy provider device 30 (e.g., when thesubsidy provider adds money to the subsidy account maintained by thecontroller 200) and decreased each time a buyer or a seller accepts thesubsidy (e.g, by agreeing to perform a task). According to oneembodiment, a penalty may be applied to a buyer or a seller who accepteda subsidy offer but failed to perform a task.

Transaction Database

Referring to FIG. 13, a table represents one embodiment of thetransaction database 1300 that may be stored at the controller 200according to an embodiment of the present invention. The table includesentries identifying transactions that have been filled or completed viathe controller 200. The table also defines fields 1302, 1304, 1306,1308, 1310, 1312, 1314, 1316 for each of the entries. The fieldsspecify: a transaction identifier 1302; an offer to sell identifier1304; an offer to buy identifier 1306; a price 1308; a fill date 1310; acomplete date 1312; a buyer subsidy 1314; and a seller subsidy 1316. Theinformation in the transaction database 1300 may be created and updated,for example, when an OTB and an OTS are matched.

The transaction identifier 1302 may be, for example, an alphanumericcode associated with a transaction that has been filled (e.g., matched)or completed via the controller 200. The transaction identifier may, forexample, be generated by the controller 200 when an OTB and an OTS arematched.

For each transaction, the transaction database 1300 stores the offer tosell identifier 1304 and the offer to buy identifier 1306 associatedwith the OTS and OTB, respectively, that have been matched by thecontroller 200. The offer to sell identifier 1304 may be based on, orassociated with, the offer to sell identifier 602 stored in the offer tosell database 600. The offer to buy identifier 1306 may be based on, orassociated with, the offer to buy identifier 502 stored in the offer tobuy database 500.

The price 1308 stored in the transaction database 1300 may indicate anamount the buyer will provide in exchange for an item and/or an amount aseller will receive in exchange for providing the item to the buyer. Thefill date 1310 may indicate the date on which an OTS was matched with anOTB and the complete date 1312 may indicate a date on which thetransaction has been completed (e.g., a date on which the item has beenprovided to the buyer, the buyer has provided payment of the price 1308,and/or the seller has received the price 1308). The buyer subsidy 1314and the seller subsidy 1316 may indicate a subsidy amount that has beenapplied to an OTB and/or an OTS, respectively, during the transaction.

Methods that may be used in connection with the transaction system 100according to an embodiment of the present invention will now bedescribed in detail with respect to FIGS. 14 through 23, In particular,FIGS. 14 through 16 and 23 illustrate some general embodiments, whileFIGS. 17 through 22 illustrate more detailed embodiments according tothe present invention.

Transaction System Methods

FIG. 14 is a flow chart illustrating a method which may be performed bya controller 200 according to an embodiment of the present invention.The flow chart depicted in FIG. 14, as well as the other flow chartsdiscussed herein, is not intended to imply a fixed order to the elementsshown therein, and embodiments of the present invention can be practicedin any order that is practicable.

At 1402, seller offer information is received. The seller offerinformation may comprise, for example, registration information and/oran OTS associated with an item being offered for sale by a seller. Theseller offer information may be received, for example, from a sellerdevice 10 via a Web site, the Internet, a seller computer, a PDA, akiosk, an electronic mail message, a telephone, an interactive voiceresponse unit, and/or an operator. The seller offer information mayinclude, for example, an item category, an item quality class, at leastone item feature, a seller price, an age associated with the item, anitem manufacturer, an item description, an item image, an itemcondition, an accessory associated with the item, a seller offer period,seller delivery information, seller payment information, a sellerevaluation rule, and/or a seller preference.

At 1404, buyer offer information is received. The buyer offerinformation may comprise, for example, an OTB associated with a buyeroffering to make a purchase. The buyer offer information may bereceived, for example, from a buyer device 10 via a Web site, theInternet, a buyer computer, a PDA, a kiosk, an electronic mail message,a telephone, an interactive voice response unit, and/or an operator. Thebuyer offer information may include, for example, an item category, anitem quality class, at least one item feature, a buyer price, an ageassociated with the item, one or more acceptable item manufacturers, anitem description, an item image, an item condition, a buyer offerperiod, buyer delivery information, buyer payment information, a buyerevaluation rule, and a buyer preference.

At 1406, an evaluation rule is determined. According to one embodimentof the present invention, the evaluation rule automatically determinedbased on revenue management information associated with the controller200, such as an amount of profit associated with the controller and/or anumber of transactions associated with the controller. According toanother embodiment, the evaluation rule is determined manually by anoperator associated with the controller 200. In either case, theevaluation rule may be selected from a plurality of possible evaluationrules. According to another embodiment, the evaluation rule isdetermined by retrieving a predetermined evaluation rule (e.g., a storedevaluation rule).

According to another embodiment, the controller 200 measures a currentperformance parameter (e.g., a rate at which transactions are beingcompleted), and the evaluation rule is determined based on thismeasurement (e.g., a certain evaluation rule traditionally has workedwell during a holiday season).

According to another embodiment, the evaluation rule is determined basedon a matching objective. The matching objective may be, for example, toincrease a profit associated with the transaction and/or to increase atotal number of transactions.

According to one embodiment of the present invention, the evaluationrule comprises not matching the buyer with at least one predeterminedseller (e.g., when the buyer and that seller have had a problem during apast transaction) and/or not matching the seller with at least onepredetermined buyer.

The evaluation rule may also be based on, for example, when the buyeroffer information is received and/or when the seller offer informationis received (e.g., an older offer may be matched before a newer offer).

The evaluation rule may also be based on information associated with thecontroller 200. For example, the information associated with thecontroller 200 may comprise an amount of profit associated with thetransaction for the controller 200, a current overall level of profitassociated with the controller 200, information associated with anothercontroller 200, a total number of buyer offers pending in the controller200 for similar items, and a total number of seller offers pending inthe controller 200 for similar items.

The evaluation rule may also be based on information associated with theseller, such as, for example, a seller location, a seller transactionhistory, a seller reputation, a seller payment identifier, demographicinformation associated with the seller, psychographic informationassociated with the seller, a credit rating associated with the seller,other offers to sell associated with the seller, other offers to buyassociated with the seller, and/or an amount of profit associated withthe transaction for the seller.

The evaluation rule may also be based on information associated with thebuyer, such as, for example, a buyer location, a buyer transactionhistory, a buyer reputation, a buyer payment identifier, demographicinformation associated with the buyer, a credit rating associated withthe buyer, psychographic information associated with the buyer, otheroffers to sell associated with the buyer, other offers to buy associatedwith the buyer, and/or an amount of profit associated with thetransaction for the buyer.

The evaluation rule may also be based on information associated with theitem, such as, for example, a past popularity of the item, a currentpopularity of the item, and/or a predicted future popularity of theitem,

At 1408, the seller offer information and the buyer offer informationare matched based on the evaluation rule.

According to one embodiment, a buyer offer code is determined based onthe buyer offer information, and a seller offer code is determined basedon the seller offer information. The buyer offer code may then bematched with the seller offer code based on the evaluation rule. Forexample, the buyer offer code may be associated with a set of possibleitems, and the matching may comprise determining that the seller offercode is associated with a subset of the set of possible items.

According to another embodiment, the controller 200 determines an itemquality class associated with the item based on the seller offerinformation. The buyer offer information may then be matched based onthe quality class. Similarly, the controller 200 may determine an itemquality class associated with the item based on the buyer offerinformation. The seller offer information may then be matched based onthe quality class. In either case, the item quality class may based on,for example, an item category, at least one item feature, an item price(e.g., a seller price or a buyer price), an age associated with theitem, an item manufacturer, an item description, an item image, an itemcondition, and/or an accessory associated with the item.

According to another embodiment, the seller offer information includes aseller price (e.g., a buyer asking price and/or a buyer maximum price),and the buyer offer information includes a buyer price (e.g., a sellerasking price and/or a seller minimum price). In this case, the matchingmay be performed based on the seller price and the buyer price. Forexample, an OTS having a minimum price of $5.00 may be matched with anOTB having a maximum price of $6.00 but not with an OTB having a maximumprice of $4.00. That is, according to one embodiment, the seller pricemust be less than or equal to the buyer price. According to anotherembodiment, however, the seller price may be greater than the buyerprice (e.g., the controller 200 or any other party may subsidize thetransaction). According to another embodiment, the seller price andbuyer price may not even be considered when the matching is performed bythe controller 200.

According to another embodiment, the seller offer information includes aseller address, and the buyer offer information includes a buyeraddress. In this case, the matching may be performed based on the selleraddress and the buyer address (e.g., an OTS may be matched with an OTBif the seller lives within five miles of the buyer).

According to another embodiment, an OTS may be matched with an OTB ifboth the seller and the buyer live (or work) within a predetermineddistance of a third party address. For example, an OTS may be matchedwith an OTB if both the seller and the buyer live within five miles of aMCDONALD'S® restauraunt.

According to another embodiment, the seller offer information includesat least one transaction requirement, and buyer offer information willonly be considered a match if the buyer offer information complies withthe transaction requirement (e.g., the buyer has a predeterminedreputation rating). According to another embodiment, the buyer offerinformation includes at least one transaction requirement, and selleroffer information will only be considered a match if the seller offerinformation complies with the transaction requirement (e.g., the sellerhas been the only owner of the item).

According to another embodiment, the seller offer information includesat least one transaction preference, and buyer offer information is morelikely to be considered a match if the buyer offer information complieswith the transaction preference (e.g., the buyer should preferably be aMETS® fan). According to another embodiment, the buyer offer informationincludes at least one transaction preference, and seller offerinformation is more likely to be considered match if the seller offerinformation complies with the transaction preference (e.g., the sellershould preferably be over 65 years old).

According to one embodiment, the seller offer information maypotentially be matched with a plurality of buyer offers, and thecontroller 200 selects one of the buyer offers. The buyer offer may beselected, for example, based on priority rankings associated with thebuyer offers. The priority rankings may be based on, for example,priority payments, other seller offers for similar items, other buyeroffers for similar items, transaction histories, seller offerinformation, and/or the buyer offer information.

According to another embodiment, the buyer offer information maypotentially be matched with a plurality of seller offers, and thecontroller 200 selects one of the seller offers. The seller offer may beselected, for example, based on priority rankings associated with theseller offers. The priority rankings may be based on, for example,priority payments, other seller offers for similar items, other buyeroffers for similar items, transaction histories, the seller offerinformation, and/or buyer offer information.

According to one embodiment, the controller 200 periodically attempts tomatch an OTS with an OTB. According to another embodiment, thecontroller 200 periodically attempts to match an OTB with an OTS. Thecontroller 200 may also evaluate offers, for example, when a new OTSand/or OTB is received.

At 1410, the controller arranges for the seller to sell the item to thebuyer. According to one embodiment, a seller offer is “binding” in thatthe seller is obligated to sell the item subsequent to said matching. Inthis case, the controller 200 may arrange for the seller to providepayment of a penalty amount if the seller does not sell the item.According to another embodiment, a buyer offer is “binding” in that thebuyer is obligated to purchase the item subsequent to said matching. Inthis case, the controller 200 may arrange for the buyer to providepayment of a penalty amount if the buyer does not purchase the item.Note that both the seller offer and the buyer offer may be binding orneither the seller offer nor the buyer offer may be binding.

FIG. 15 is a flow chart of a method according to another embodiment ofthe present invention. At 1502, seller offer information is received.The seller offer information may comprise, for example, registrationinformation and/or an OTS associated with an item being offered for saleby a seller.

At 1504, an appropriate item price is determined based on the selleroffer information. According to another embodiment, the appropriate itemprice is further based on a matching objective, such as to increase aprofit associated with the transaction and/or to increase a total numberof transactions.

According to an embodiment of the present invention, an item qualityclass is determined based on the seller offer information. For example,based on an item manufacturer and one or more item features, thecontroller 200 may determine that an item is in the “better” class. Theappropriate item price may then be determined based on the item qualityclass.

At 1506, information associated with the appropriate item price istransmitted to the seller. The information may comprise, for example,the appropriate item price (or appropriate item price range), aprobability that the item will be sold at one or more prices, and anaverage length of time it will take to sell the item at one or moreprices. The information may be transmitted to, for example, a sellerdevice 10 via a Web site, the Internet, a seller computer, a PDA, akiosk, an electronic mail message, a telephone, an interactive voiceresponse unit, and/or an operator.

At 1508, an actual seller price is determined. The actual seller pricemay be determined, for example, by the controller 200 setting the actualseller price to the appropriate item price (e.g., the controller 200,and not the seller, determines the actual seller price).

According to another embodiment, the controller may receive anadjustment of the appropriate item price from the seller device 10. Forexample, the seller may indicate that he or she would like to increasethe appropriate item price by $5 or 10%. The actual seller price is thendetermined based on the appropriate item price and the adjustment.According to another embodiment, the actual seller price is determinedbased on information received from the seller device 10. For example,seller may transmit a seller-defined price to the controller 200.

Note that the method described with respect to FIG. 15 may similarly beperformed to transmit an appropriate item price to the buyer and todetermine an actual buyer price.

FIG. 16 is a flow chart of a method according to another embodiment ofthe present invention.

At 1602, seller offer information is received. The seller offerinformation may comprise, for example, registration information and/oran OTS associated with an item being offered for sale by a seller. At1604, buyer offer information is received. The buyer offer informationmay comprise, for example, an OTB associated with a buyer offering tomake a purchase.

At 1606, a subsidy is determined. The subsidy is associated with abenefit from a subsidy provider (e.g., the controller 200 or a thirdparty) to be applied to the transaction (e.g., on behalf of a buyerand/or a seller).

The subsidy may be conditioned upon performance of a task by the seller.In this case, the controller 200 may transmit an indication of a subsidyoffer to the seller, and receive an indication of acceptance of thesubsidy offer from the seller. According to another embodiment, thesubsidy is conditioned upon performance of a task by the buyer. In thiscase, the controller 200 may transmit an indication of a subsidy offerto the buyer, and receive an indication of acceptance of the subsidyoffer from the buyer. Note that a subsidy may also be conditioned uponperformance of a task by both the buyer and the seller. According to oneembodiment, the indication of the subsidy offer is transmitted to theseller and/or the buyer via a Web site, the Internet, a computer, a PDA,a kiosk, an electronic mail message, a telephone, an interactive voiceresponse unit, and/or an operator.

According to one embodiment, a subsidy may be conditioned upon, forexample, a buyer and/or a seller submitting another offer to thecontroller 200, completing another transaction through the controller200, subscribing to a service, applying for a service, a performance ofa task (or a promise to perform a task), and/or a performance of aplurality of tasks.

The subsidy may be determined by the controller 200 based on, forexample, information associated with the seller, information associatedwith the item, information associated with the buyer, informationassociated with the controller 200, and/or information associated with athird party. The subsidy may also be based on, for example, an itemcategory, an item quality class, at least one item feature, an itemprice, an age associated with the item, an item manufacturer, an itemdescription, an item image, an item condition, an accessory associatedwith the item, an offer period, delivery information, paymentinformation, at least one evaluation rule, a location, a transactionhistory, demographic information, psychographic information, a creditrating, other offers to sell, other offers to buy, and/or an amount ofprofit associated with the transaction.

At 1608, it is arranged for the seller to provide the item to the buyerin accordance with the benefit. For example, the benefit may comprise asubsidy amount that is added to the buyer price and provided to theseller in exchange for the item.

FIG. 17 is a flow chart of a matching method according to an embodimentof the present invention. At 1702, the controller 200 receives an offer(i.e., an OTS or an OTB) including item information. Based on the iteminformation, the controller 200 generates a matching code for the itemat 1704. The matching code is used to find compatible codes anddetermine at least one matching offer at 1706. The matching objectivesare applied to the determined matching offers at 1708 to select an“optimal” matching offer (e.g., an offer that best satisfies thematching objectives). The controller 200 then automatically matches, orbinds, the received offer with the selected offer.

FIG. 18A is a flow chart of an offer to buy method according to anembodiment of the present invention. At 1802, an OTB, including anindication of an item category, is received from a buyer (e.g., thebuyer is interested in purchasing a “camera”). At least one qualityclass associated with the item category is retrieved at 1804, and theretrieved quality class or classes are output to the buyer at 1806. Aselection of a quality class is then received from the buyer at 1808(e.g., “best” quality).

At 1810, the controller 200 retrieves at least one price or price rangeassociated with the selected quality class and outputs the retrievedprice to the buyer at 1812. The controller 200 then receives a price toassociate with the OTB from the buyer at 1814 (e.g., when the buyerselects one of a plurality of appropriate prices).

At 1816, the controller 200 retrieves a predetermined matching code forthe received quality class to assign to the OTB, and the buyerinformation is stored in the buyer database 300. The OTB information,including the price (e.g., as an asking price 512 or a maximum price514) and matching code 508, is stored in the offer to buy database 500.

FIG. 18B is a flow chart of an offer to sell method according to anembodiment of the present invention. At 1820, an OTS, including an itemdescription, is received from a seller. Based on the item description,the controller 200 assigns the OTS to a quality class.

At 1824, the controller 200 retrieves at least one price or price rangeassociated with the assigned quality class and outputs the retrievedprice to the seller at 1826. The controller 200 then receives a price toassociate with the OTS from the seller at 1828 (e.g. when the sellerselects one of a plurality of appropriate prices).

At 1830, the controller 200 generates a matching code for the OTS, andthe seller information is stored in the seller database 400. The OTSinformation, including the price (e.g., an asking price 612 or a minimumprice 614) and the matching code 608, is stored in the offer to selldatabase 600.

FIG. 19 is a flow chart of a preliminary matching method based on thecompatibility of matching codes and basic price elimination according toan embodiment of the present invention. At 1902, an OTB, including anitem description and a price (e.g., a maximum price 514) are receivedfrom a buyer, and a matching code is assigned to the OTB at 1904.

At 1906, each OTS with a matching code that is compatible with thematching code assigned to the OTB is retrieved. If at least one OTS isnot found at 1908, the OTB is stored as “unmatched” for a predeterminedtime (e.g., for twenty four hours) at 1910.

If at least one matching OTS is found at 1908, each OTS with a price(e.g., a minimum price 614) exceeding the OTB price is eliminated at1912. If more than one OTS still remains, the controller 200 selects anoptimal matching OTS based on matching objectives (e.g., based oninformation in the matching objectives database 900 and rules database1000).

FIGS. 20A through 20C are a flow chart of a subsidy method according toan embodiment of the present invention. At 2002, an OTB is received froma buyer. The OTB includes an item description, an asking price, and amaximum price. Based on the item description, the controller 200retrieves at least one matching OTS at 2004.

If the price of the matching OTS is less than or equal to the OTB askingprice at 2006, the match is completed based on matching objectives at2008 (e.g., the OTS is selected as a potentially matching offer and thematching objectives may be used to select one of a number of potentiallymatching offers).

If the price of the matching OTS is more than the OTB asking price at2006, a subsidy rule is retrieved by the controller 200 in accordancewith the information associated with the OTB at 2010. The controller 200then calculates a subsidy amount based on the retrieved subsidy rule at2012 and the subsidy amount is added to the OTB asking price at 2014.

The controller then searches for a matching OTS with a price less thanor equal to the OTB asking price plus the subsidy amount at 2016. If, at2018, the price of at least one matching OTS is less than or equal tothe OTB asking price plus the subsidy amount, the match is completed at2020 and a discrepancy rule is applied with respect to any excess funds.

If, at 2018, no OTS has a price less than or equal to the OTB askingprice plus the subsidy amount, the controller 200 searches for amatching OTS with a price less than the OTB maximum price at 2022. If,at 2024, the price of at least one matching OTS is less than or equal tothe maximum price, the match is completed based on current matchingobjectives at 2026.

If, at 2024, no OTS has a price less than or equal to the maximum price,a subsidy rule is retrieved by the controller 200 in accordance with theinformation associated with the OTB at 2028. The controller 200 thencalculates a subsidy amount based on the retrieved subsidy rule at 2030and the subsidy amount is added to the OTB maximum price at 2032.

The controller 200 searches for a matching OTS with a price less thanthe OTB maximum price plus the subsidy amount at 2034. If, at 2036, theprice of at least one matching OTS is less than or equal to the maximumprice plus the subsidy amount, the match is completed and a discrepancyrule is applied at 2038.

If, at 2036, no OTS has a price less than or equal to the maximum priceplus the subsidy amount, the OTB is stored as unmatched at 2040. Anelectronic mail message may be sent to the buyer indicating, forexample, that a match may be found if his or her maximum price wasincreased by $5.

FIG. 21 is a flow chart of a matching objective method when there ismore than one matching OTS for a single OTB according to an embodimentof the present invention. An OTB, including an item description and aprice (eg., a maximum price) is received from a buyer at 2102. Based onthe item description and price, more than one matching OTS is retrievedat 2104 from the offer to sell database 600. Based on the matchingobjectives hierarchy retrieved from the matching objectives database 900at 2106, the highest priority rule associated with the matchingobjective at the top of the hierarchy is retrieved at 2108 from the ruledatabase 1000. The highest priority rule is then applied to eachmatching OTS at 2110.

If only a single matching OTS remains at 2112, the controller 200automatically matches and binds that OTS with the received OTB at 2114.

If more than one OTS remains at 2112, the next highest priority matchingobjective is retrieved from the matching objectives database 900 at2116. The highest priority rule associated with the next highestpriority matching object is retrieved at 2118 from the rule database1000. This rule is then applied to each remaining OTS at 2110, and theprocess is repeated until a single OTS is matched to the received OTB.

FIG. 22 is a flow chart of a “timed-release” method according to anembodiment of the present invention. At 2202, an OTB is received. If amatching OTS is found at 2204, the transaction is completed asappropriate at 2206.

If no matching OTS is found at 2204 (e.g., the controller 200 has beenunable to match the OTB for a predetermined period of time, such as forone week), the contact identifier 408 of each seller available formessaging (e.g., each seller who requested such messaging when he or sheregistered with the controller 200) is retrieved at 2208 from the sellerdatabase 400. The contact identifier 408 is then used to transmit anindication of the unmatched OTB to those sellers at 2210.

If this results in a match at 2212 (e.g., if one of the contactedsellers accepted the unmatched OTB), the transaction is completed at2214. If no match is found at 2212, the unmatched OTB is posted on ageneral Web site that potential sellers may visit to review, and accept,the unmatched OTB.

Thus, the time-release embodiment provides an alternative to rejectingan OTB if it is not automatically matched. This embodiment also enablesthe controller 200 to have different types of sellers, some of whom payfor receiving various services (e.g., some of whom pay to receive anelectronic mail message regarding an unmatched OTB). A similartime-release embodiment may be implemented with respect to an unmatchedOTS.

According to one embodiment, a seller may not submit a specific OTS butmay instead indicate that he or she is interested in learning about alloffers to buy that satisfy some criteria (e.g., all offers to buyassociated with any of a list of baseball cards). In this case, thecontroller 100 may inform the seller of all such offers to buy or onlyof those offers to buy that are not matched with an OTS. Similarly, abuyer may not submit a specific OTB but may instead indicate that he orshe is interested in learning about all offers to sell that satisfy somecriteria.

FIG. 23 is a flow chart of a method for arranging the sale of asecondary market item in accordance with an embodiment of the presentinvention. At 2302, seller payment information is received, as is abinding seller offer associated with a secondary market item. At 2304,buyer payment information is received, as is a binding buyer offerassociated with a buyer interested in making a purchase.

At 2306, the binding seller offer and the binding buyer offer arematched, and at 2308 it is arranged for the seller to sell the secondarymarket item to the buyer.

If it is determined at 2310 that the seller has not performed inaccordance with the binding seller offer (e.g., the seller has notprovided the item), then a penalty is applied to the seller at 2312. Thepenalty may comprise, for example, having the seller provide payment ofa penalty amount (e.g., to the controller 200 and/or the buyer) usingthe seller payment information. The penalty may also comprise, forexample, preventing another offer from the seller and/or adjusting areputation associated with the seller.

If it is determined at 2314 that the buyer has not performed inaccordance with the binding buyer offer (e.g., the buyer has notprovided payment in exchange for the item), then a penalty is applied tothe buyer at 2316. The penalty may comprise, for example, having thebuyer provide payment of a penalty amount (e.g., to the controller 200and/or the seller) using the buyer payment information. The penalty mayalso comprise, for example, preventing another offer from the buyerand/or adjusting a reputation associated with the buyer.

If both the seller and the buyer have performed in accordance with theirrespective offers, the transaction is completed at 2318.

Additional Embodiments

The following are several examples which illustrate additionalembodiments of the present invention. These examples do not constitute adefinition of all possible embodiments, and those skilled in the artwill understand that the present invention is applicable to many otherembodiments. Further, although the following embodiments are brieflydescribed for clarity, those skilled in the art will understand how tomake any changes, if necessary, to the above-described apparatus andmethods to accommodate these and other embodiments and applications.

According to one embodiment, buyers and sellers can receive periodicupdates about the status of their offers. For example, the controller200 may transmit status information to a buyer or seller along with atleast one “close” matching offer. That is, the controller 200 selects anoffer that does not match (e.g., does not match based on price orgeography) and transmits information about the offer to the buyer and/orseller in a “close-call” electronic mail message. The buyer and/orseller can then determine whether to bind this offer (e.g., byincreasing or decreasing an offer price). The buyer and/or seller maypay a fee for such a service.

According to another embodiment, when an OTB cannot be matched thecontroller 200 determines what aspects of the OTB are preventing amatch. The aspects may include, for example, the buyer price, the itemquality, and one or more item features. The controller 200 may send anelectronic mail message to the buyer describing the aspects of the OTBthat should be adjusted to increase the probability that the OTB will bematched. A similar embodiment may be directed to an OTS. In either case,the electronic mail message may further include an incentive to adjustthe offer.

According to another embodiment, the controller 200 automaticallyadjusts an offer price on a periodic basis. For example, a seller mayask that his or her minimum price be lowered by $10 each week until anitem is sold. Similarly, a buyer may ask that his or her maximum pricebe increased by 1% each day until an item is purchased.

According to another embodiment, a buyer and/or seller receives abenefit in exchange for submitting a reasonable offer (e.g., an offerthat is more likely to be matched by the controller 200). For example, abuyer may be told that he or she will receive a free warranty (or have acommission fee waived) in exchange for selecting a buyer price within anappropriate item price range. According to another embodiment, thecontroller 200 stores commission fee rules. The commission fee rules maybe based on, for example, an average item price or seller-defined itemprice, an item type, and/or a market size for the item. As the marketfor an item grows or changes, the commission fee may be adjusted toimprove, for example, a volume-to-profit ratio.

According to another embodiment, a “ticker-tape” or “zipper” display isused to present information about offers that have been submitted bybuyers. Each OTB moves across the zipper display and may be a hyperlinkused to receive information, accept the OTB, and/or submit acounter-offer. According to another embodiment, a first zipper displaysopen offers and a second zipper displays bound offers *along with thelength of time to took for the offer to be bound). The seller mayspecify the types of offers included in the zipper display based on, forexample, his or her location and/or an item category. According toanother embodiment, the seller may submit an OTS and only be shown anOTB if it potentially matches the seller's OTS. According to anotherembodiment, the zipper display indicates the minimum price set by aseller and the actual price at which the item was sold.

The present invention has been described in terms of several embodimentssolely for the purpose of illustration. Persons skilled in the art willrecognize from this description that the invention is not limited to theembodiments described, but may be practiced with modifications andalterations limited only by the spirit and scope of the appended claims.

1-59. (canceled)
 60. A method for a controller to facilitate atransaction, comprising: receiving seller offer information associatedwith an item being offered for sale by a seller; determining anappropriate item price based on the seller offer information;transmitting information associated with the appropriate item price tothe seller; and determining an actual seller price.
 61. The method ofclaim 60, further comprising: arranging for the seller to provide theitem to a buyer in exchange for payment of an amount based on the actualseller price. 62-94. (canceled)